Post by account_disabled on Mar 9, 2024 22:40:10 GMT -5
China accounts for almost all of the market share in this booming sector
According to a study recently published by ICEX, China leads the growth of the global electric vehicle industry. In 2018 alone, it produced 1.27 million vehicles, with an increase of 59% compared to 2017, and this country is expected to account for half of global sales of electric vehicles until 2025.
To sustain this growth in global demand for this type of vehicle, it is necessary that the supply chain has sufficient production capacity for important elements for its manufacture, especially in the case of the battery, which accounts for 60% of the total cost of the vehicle. vehicle.
The development of electric Ecuador Mobile Number List vehicles in China is part of the Made in China 2025 plan , where these vehicles appear as one of the ten sectors of the plan, with batteries having to be controlled by local suppliers. To achieve this, Beijing has subsidized the sector, with the consequent proliferation of companies producing batteries and vehicles, with some 135 local producers in 2017.
There are different types of batteries, but only lithium-ion (Li-Ion) batteries with an average density of 140 Wh/kg have become the main option, representing more than 85% of the world market.
This market is expected to grow at a rate of 20% annually until reaching 90 billion euros in 2025, mainly due to the demand for electric vehicles in China.
On the other hand, China already has a battery production capacity three times greater than that planned in the rest of the world.
Over the past few years, there has been a reduction in prices due to stiff competition, technological advances and economies of scale. Average prices for Li-Ion batteries have fallen dramatically over the last decade, from €1,000/kWh in 2010 to €160/kWh7 in 2018 and this trend is expected to continue.
However, companies like Tesla have shown concern about the increase in raw material prices (copper, nickel, lithium and cobalt), which may cause battery prices to rise at least in the short term.
The global passenger vehicle battery market is dominated by a few companies, mainly from China, Japan and South Korea. Seven of the ten largest battery manufacturers in the world are Chinese and only two: CATL and BYD, are expected to reach 70% of the global market share in the coming years.
As far as Spain is concerned, no electric vehicles are being exported to China and there are no factories for these batteries despite being a global benchmark in the production of automotive components. However, companies in the sector are focusing on products related to batteries, such as cases.
Chinese battery companies have begun their internationalization by focusing on Europe, with a view to it being the second largest electric vehicle market in the world. Thus, CATL, the main Chinese producer, has announced the construction of its first European battery cell plant in Germany, which will be operational in 2021 and will require an investment of 240 million euros. Also, BYD is looking for the most suitable location to invest in a production plant in Europe and the Chinese investment fund GSR Capital, which acquired Nissan's battery division, has announced the installation of plants in Turkey and Sweden. Also, Guoxuan Hi-Tech, present in the US, Japan and Singapore, is exploring the possibility of opening an R&D center in Europe.
This scenario can represent a clear opportunity for Spanish electric vehicle factories, as battery manufacturers and R&D centers look for locations close to their clients to reduce transportation costs. On the other hand, component manufacturers could continue to specialize in this booming sector.
According to a study recently published by ICEX, China leads the growth of the global electric vehicle industry. In 2018 alone, it produced 1.27 million vehicles, with an increase of 59% compared to 2017, and this country is expected to account for half of global sales of electric vehicles until 2025.
To sustain this growth in global demand for this type of vehicle, it is necessary that the supply chain has sufficient production capacity for important elements for its manufacture, especially in the case of the battery, which accounts for 60% of the total cost of the vehicle. vehicle.
The development of electric Ecuador Mobile Number List vehicles in China is part of the Made in China 2025 plan , where these vehicles appear as one of the ten sectors of the plan, with batteries having to be controlled by local suppliers. To achieve this, Beijing has subsidized the sector, with the consequent proliferation of companies producing batteries and vehicles, with some 135 local producers in 2017.
There are different types of batteries, but only lithium-ion (Li-Ion) batteries with an average density of 140 Wh/kg have become the main option, representing more than 85% of the world market.
This market is expected to grow at a rate of 20% annually until reaching 90 billion euros in 2025, mainly due to the demand for electric vehicles in China.
On the other hand, China already has a battery production capacity three times greater than that planned in the rest of the world.
Over the past few years, there has been a reduction in prices due to stiff competition, technological advances and economies of scale. Average prices for Li-Ion batteries have fallen dramatically over the last decade, from €1,000/kWh in 2010 to €160/kWh7 in 2018 and this trend is expected to continue.
However, companies like Tesla have shown concern about the increase in raw material prices (copper, nickel, lithium and cobalt), which may cause battery prices to rise at least in the short term.
The global passenger vehicle battery market is dominated by a few companies, mainly from China, Japan and South Korea. Seven of the ten largest battery manufacturers in the world are Chinese and only two: CATL and BYD, are expected to reach 70% of the global market share in the coming years.
As far as Spain is concerned, no electric vehicles are being exported to China and there are no factories for these batteries despite being a global benchmark in the production of automotive components. However, companies in the sector are focusing on products related to batteries, such as cases.
Chinese battery companies have begun their internationalization by focusing on Europe, with a view to it being the second largest electric vehicle market in the world. Thus, CATL, the main Chinese producer, has announced the construction of its first European battery cell plant in Germany, which will be operational in 2021 and will require an investment of 240 million euros. Also, BYD is looking for the most suitable location to invest in a production plant in Europe and the Chinese investment fund GSR Capital, which acquired Nissan's battery division, has announced the installation of plants in Turkey and Sweden. Also, Guoxuan Hi-Tech, present in the US, Japan and Singapore, is exploring the possibility of opening an R&D center in Europe.
This scenario can represent a clear opportunity for Spanish electric vehicle factories, as battery manufacturers and R&D centers look for locations close to their clients to reduce transportation costs. On the other hand, component manufacturers could continue to specialize in this booming sector.